4 Stocks Rising on Unusual Volume - views

WINDERMERE, Fla. (Stockpickr) -- Professional traders running mutual funds and hedge funds don’t just look at a stock’s price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by “superinvestors.”

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it’s always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

Atossa Genetics (ATOS) is a health care company focused on the commercialization of cellular and molecular diagnostic risk assessment products and related services for the detection of pre-cancerous conditions that could lead to breast cancer. This stock closed up 2.7% at $11.35 on Monday.

Monday's Volume: 149,000

Average Volume: 64,387

Volume % Change: 77%

From a technical perspective, ATOS bounced higher here right above some near-term support at $10 with above-average volume. This move is quickly pushing ATOS within range of triggering a major breakout trade. That trade will hit if ATOS manages to take out its all-time high of $12.40 with high volume.

Traders should now look for long-biased trades in ATOS as long as it’s trending above Monday’s low of $11.39 or above some key near-term support at $10 and then once it sustains a move or close above its all-time high at $12.40 with volume that hits near or above 64,387 shares. If that breakout triggers soon, then ATOS will enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that breakout are $15 to $16.

Ambarella

Ambarella (AMBA) is a developer of semiconductor processing solutions for video that enable high-definition video capture, sharing and display. This stock closed up 9.5% at $14.13 on Monday.

Monday's Volume: 886,000

Average Volume: 208,054

Volume % Change: 313%

From a technical perspective, AMBA spiked higher here right above some near-term support at $12.61, and broke out above some near-term overhead resistance levels at $13.35 to $14 with above-average volume. This move is quickly pushing shares of AMBA within range of triggering another major breakout trade. That trade will hit if AMBA manages to take out some near-term overhead resistance levels at $14.63 to $14.73 with high volume.

Traders should now look for long-biased trades in AMBA as long as it’s trending above $14 or $13.35, and then once it sustains a move or close above those breakout levels with volume that hits near or above 208,054 shares. If that breakout triggers soon, then AMBA will set up to enter new all-time-high territory above $14.73, which is bullish technical price action. Some possible upside targets off that breakout are $17 to $20.

Team

Team (TISI) is a provider of specialty industrial services, including inspection and assessment, required in maintaining high temperature and high pressure piping systems and vessels. This stock closed up 1.3% at $40.28 on Monday.

Monday's Volume: 201,000

Average Volume: 172,389

Volume % Change: 56%

From a technical perspective, TISI spiked higher here right above some near-term support at $39 with above-average volume. This stock recently gapped down big from over $46 to $37 with heavy downside volume. Following that move, shares of TISI have started to rebound, and it’s now approaching a near-term breakout trade. That trade will hit if TISI manages to take out its gap-down-day high of $41.20 with high volume.

Traders should now look for long-biased trades in TISI as long as it’s trending above Monday’s low of $39.73 or above $39 and then once it sustains a move or close above $41.20 with volume that hits near or above 172,389 shares. If that breakout hits soon, then TISI will set up to re-fill some of its previous gap-down zone from earlier this month that started near $46. One potential target if TISI gets into that gap with volume is its 50-day moving average of $43.60.

Nexstar Broadcasting

Nexstar Broadcasting (NXST) is a television broadcasting and digital media company engaged in acquisition, development and operation of television stations and interactive community Web sites in medium-sized markets in the U.S. This stock closed up 5.9% at $18.10 on Monday.

Monday's Volume: 817,000

Average Volume: 327,364

Volume % Change: 131%

From a technical perspective, NXST ripped higher here right off some near-term support at $17 with above-average volume. This move has sent shares of NXST into breakout territory, since the stock cleared some near-term overhead resistance and its former 52-week high of $17.50. This move also pushed shares of NXST above the upper end of its recent consolidation pattern between $16 and $17.50.

Traders should now look for long-biased trades in NXST as long as it’s trending above today’s low of $17.08 or above $16 and then once it sustains a move or close above $17.50 to Monday’s intraday high of $18.42 with volume that hits near or above 327,364 shares. If that breakout triggers soon, then NXST will set up to enter new 52-week-high territory above $18.42, which is bullish technical price action. Some possible upside targets off that move are $20 to $22.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.